California Assembly Bill AB1240 Amended / Bill

 BILL NUMBER: AB 1240AMENDED BILL TEXT AMENDED IN SENATE JULY 23, 2009 AMENDED IN ASSEMBLY APRIL 29, 2009 INTRODUCED BY Assembly Member Davis FEBRUARY 27, 2009 An act to amend Sections  81332 and 81373   81361, 81367, 81370, 81372, and 81375  of, to add Section 81523.5 to, and to repeal  Section 81371   Sections 81371 and 81373  of, the Education Code, relating to community colleges. LEGISLATIVE COUNSEL'S DIGEST AB 1240, as amended, Davis. Community colleges: leasing of buildings: sale of district property.  (1) Existing law allows the governing board of a community college district to enter into an agreement with another entity whereby that entity will construct a building to be used and leased by the district. Existing law requires the agreement to vest title to the building in the district at, or before, the expiration of the lease.   Before entering into this type of agreement, existing law requires that the district have a site available upon which the building may be constructed, that the district has complied with provisions of existing law relating to the selection and approval of the site, and has prepared and adopted plans for the building to be constructed on the site. Existing law provides that a district has a site available for the construction of a building if it either owns the site or has an option which allows the district to purchase the site.   This bill would delete provisions providing that a site is available for construction of a building if the district has an option on the property.   (2)   (1)  Existing law allows the  governing board of a Community College  district to lease temporary-use buildings. Existing law provides that any lease of a temporary-use building that is for more than a total of three years, or is under a lease-purchase contract, is subject to compliance with existing law providing for the construction of school buildings under the supervision of the Department of General Services pursuant to specified standards. This bill would allow the Los Angeles Community College District to lease a temporary use building  that is 50,000 square-feet or less  for up to a total of 5 years without being subject to compliance with the above provisions of existing law regarding building standards. The bill would provide that this provision would not apply to leases with an effective date or effective renewal date that is after January 1, 2015. This bill would make a  Legislative   legislative  declaration regarding the need for a special statute regarding the Los Angeles Community College District.  (3)   (2)  Existing law allows the governing board of a community college district to sell or lease any real property belonging to the district. Existing law requires the district to call for oral bids before accepting any written proposals to sell or lease district property. Existing law requires the board to accept an oral bid if it exceeds the highest written proposal by 5%. This bill would repeal the provisions  requiring the district to call for   relating to  oral bids.  (4) Existing law provides that if the property is sold on a higher oral bid, 1/2 of the commission is to be paid to the broker who submitted the highest written proposal, and 1/2 of the commission is to be paid to the to the broker who procured the actual purchaser.   This bill would delete provisions requiring the district to split the commission between the broker procuring the highest written proposal and the broker procuring the actual purchaser in the event of a sale on a higher oral bid. This bill would require the full commission to be paid to the broker procuring the purchaser.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 81332 of the Education Code is amended to read: 81332. Before the governing board of a community college district enters into a lease or agreement pursuant to this article, it shall have available a site upon which a building to be used by the district may be constructed and shall have complied with the provisions of law relating to the selection and approval of sites, and it shall have prepared and shall have adopted plans and specifications for such building which have been approved pursuant to Article 7 (commencing with Section 81130) of Chapter 1 of Part 49. A district has a site available for the purposes of this section if it owns a site.   SECTION 1.   Section 81361 of the   Education Code   is amended to read:  81361. The governing board of  any   a  community college district  which   that  has by majority vote established a standard rate or rates for the lease pursuant to this article of its real property may by majority vote delegate to  such   an  officer or employee as the governing board may designate, the power to enter into leases, for and in behalf of the district, of any real property of the district, with respect to which real property the district has received only one sealed proposal  which   that  conforms with the existing standard rate or rates, from a responsible bidder  and no oral bid which would meet the requirements of Section 81371  .  SEC. 2.   Section 81367 of the   Education Code   is amended to read:  81367. If, in the discretion of the board, it is advisable to offer to pay a commission to a licensed real estate broker who is instrumental in obtaining any proposal, the commission shall be specified in the resolution. No commission shall be paid unless there is contained in or with the sealed proposal  or stated in or with the oral bid, which   that  is finally accepted  ,  the name of the licensed real estate broker to whom it is to be paid, and the amount or rate thereof. Any commission shall, however, be paid only out of money received by the board from the sale or rental of the real property.  SEC. 3.   Section 81370 of the   Education Code   is amended to read:  81370. (a) At the time and place fixed in the resolution for the meeting of the governing body, all sealed proposals  which   that  have been received shall, in public session, be opened, examined, and declared by the board. Except as provided in subdivision (b), of the proposals submitted  which   that  conform to all terms and conditions specified in the resolution of intention to sell or to lease and  which  that  are made by responsible bidders, the  sealed  proposal  which   that  is the highest, after deducting therefrom the commission, if any, to be paid a licensed real estate broker in connection therewith, shall be finally accepted, unless  a higher oral bid is accepted or  the board rejects all  of these  bids. (b) Notwithstanding subdivision (a), the governing board of any community college district may apply to the Board of Governors of the California Community Colleges for a waiver of the requirement that the governing board accept the highest responsible bid for the sale or lease of real property. The board of governors may grant a waiver pursuant to this subdivision if it determines that the waiver is in the best interests of the community college district.  SEC. 2.   SEC. 4.  Section 81371 of the Education Code is repealed.  SEC. 3.   Section 81373 of the Education Code is amended to read: 81373. In the event of a sale to a purchaser procured by a licensed real estate broker who is qualified as provided in Section 81367, the board shall allow a commission on the full amount for which the sale is confirmed.   SEC. 5.   Section 81372 of the   Education Code   is amended to read:  81372.  (a)    The governing board by majority vote may adopt a rule delegating to an officer or employee of the district the authority to perform the duties required to be performed by the governing board under  Sections   Section  81370  and 81371  . If  such   a delegation  rule is adopted  pursuant to this subdivision  , the resolution required in Section 81365 shall specify, in lieu of the public meeting of the governing board to be held at its regular place of meeting, the place at which the designated officer or employee will receive and open sealed proposals to purchase or lease  and will call for oral bids  .  All   (b)     All  other provisions of this article not in conflict with the delegation of this authority are applicable. However, the final acceptance of a bid, or rejection of all bids, shall be made by the governing board at a public meeting.  SEC. 6.   Section 81373 of the   Education Code   is repealed.   81373. In the event of a sale on a higher oral bid to a purchaser procured by a licensed real estate broker, other than the broker who submitted the highest written proposal, and who is qualified as provided in Section 81367, the board shall allow a commission on the full amount for which the sale is confirmed. One-half of the commission on the amount of the highest written proposal shall be paid to the broker who submitted it, and the balance of the commission on the purchase price to the broker who procured the purchaser to whom the sale was confirmed.   SEC. 7.   Section 81375 of the   Education Code   is amended to read:  81375. The governing body may at the session, if it deems  such action to be   it would be  for the best public interest, reject any and all bids  , either written or oral  , and withdraw the property from sale or lease.  SEC. 4.   SEC. 8.  Section 81523.5 is added to the Education Code, to read: 81523.5. (a) Notwithstanding subdivision (d) of Section 81523, in order to adequately assess long-term site viability, any temporary use building  that is 50,000 square feet   or less  which the Los Angeles Community College District leases under one, or successive leases, for a total time of five years or less, and in which students or faculty are expected to enter, shall be exempt from the provisions of Article 7 (commencing with Section 81130) and Article 8 (commencing with Section 81160) of Chapter 1  of this part  . (b) This section does not apply to a lease with an effective date or effective renewal date that is on or after January 1, 2015.  SEC. 5.   SEC. 9.  The Legislature finds and declares that due to unique circumstances regarding the Los Angeles Community College District, a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution.